LONDON: The newly elected government of Nawaz Sharif has assumed office at a time when Pakistan economy faces a near collapse with the loss of US economic aid and Saudi Arabia refusing to accord Islamabad any significant role in the gulf.

Pakistan has not been included in the list of countries most affected by the Gulf crisis and after the US. Congressional aid embargo because of Islamabad’s nuclear program, there is no sign of anyone coming up with two billion dollars the new government needs immediately to avert the collapse, according to media reports from Islamabad.

Pakistani hopes that the gulf crisis could become a bonanza, like the Soviet intervention in Afghanistan proved to be a decade ago, now appears unlikely to be fulfilled, the reports said.

The recent talks between Pakistan and Saudi Arabia on sending Pakistani armored division to the Gulf have broken down following the Saudi’s refusal to provide the tanks needed for the force, “the independent” reports quoting Pakistani officials and diplomats.

The news comes as a heavy blow to Pakistan’s military establishment, which hoped to gain greater regional clout and financial benefits from the gulf crisis, the paper said.

Pakistani, which has all its armor tied up because of tension within the country, had offered to provide all the manpower for an armored division to defend Saudi Arabia as long as the Saudis were prepared to supply the tanks. Hopes that Pakistan could also provide extra maintenance crews for western units already in Saudi Arabia have also been dashed, the report said.

Asked to comment on Bhutto’s persistent critical observations against him after he sacked her, Khan said it is up to her. What else can she say?

Questioned about U S suspension of aid to Pakistan, he said we want normal relations. But not at the cost of our sovereignty and self-respect.

He said he wanted the new government to lay more stress on self-reliance.

Earlier, Sharif, nominated by the Islami Jamhoori Ittehad, was declared leader of the national assembly after he defeated Mohammad Afzal Khan, the candidate sponsored by the people’s democratic alliance, by a margin of 114 votes.

Sharif secured 153 votes against the 39 collected by Mohammed Afzal Khan in the 217member assembly.

As the proceedings commenced in the assembly, former interior minister, Aitzaz Ahsan raised technical objections contending that the majority leader could be named only through a secret ballot.

The PDA members staged a walkout when the speaker, Gohar Ayub Khan rejected their plea. They later returned to participate in the process of ascertaining which member commanded majority support in the house.

Addressing the house, Sharif sought the cooperation of the opposition in fulfilling the aspirations of the masses and ushering in an era of peace and prosperity.

Official sources said the first lot of cabinet ministers would be announced soon, most likely before Ishaq Khan Leaves for a four day tour of Japan on November 10.

Article extracted from this publication >> November 16, 1990